Chirac woos India’s business

AP

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NEW DELHI (AP) – French President Jacques Chirac planned to meet with Indian Prime Minister Manmohan Singh and other officials Monday as he pressed on with efforts to strengthen business ties with one of the world’s fastest growing economies.

French President Jacques Chirac inspects a guard of honor during his ceremonial welcome at the Presidential Palace in New Delhi, India, Monday, Feb. 20, 2006. Chirac arrived in India on Sunday for a two–day visit, hoping to strengthen business ties with one of the world’s fastest growing economies and ensure that traditionally strong Franco–Indian ties are not undermined by a series of recent controversies. Photo: AP

Chirac was also working to ensure that traditionally strong Franco–Indian ties are not undermined by a series of recent controversies.

The French leader narrowly sidestepped having the visit overshadowed by a decommissioned French aircraft carrier containing toxic chemicals. The asbestos–carrying Clemenceau had been on route to India to be dismantled when Chirac ordered it back to France on Wednesday after protests from French and Indian environmental groups and trade unions.

But other sticky issues still threaten to derail the trip, including allegations of French racism in reaction to last month’s bid by Mittal Steel Co., run by Indian–born Lakshmi N. Mittal, to buy European steel giant Arcelor SA.

Chirac is expected to meet Mittal in New Delhi before departing Tuesday, his office said.

France is also pushing to maintain its position as a key weapons supplier to India, and with New Delhi looking to buy 126 new warplanes in a deal worth billions of dollars (euros), Chirac is expected to make the case for French Mirage fighter jets over rival aircraft from the U.S., Russia and Sweden.

Chirac is also expected to sign a pact to cooperate on nuclear power with India, which has an immense demand for energy.

"It’s in the interest of everybody that India produce its energy to support its development," he told Indian business leaders.

The United States also has a plan to share civilian nuclear technology with India, which has been long cut off from most nuclear trade because of its refusal to sign the international Nuclear Nonproliferation Treaty. The U.S. agreement, though, has yet to be finalized.

Chirac is accompanied by some 50 French executives. French companies are eager to expand their presence in India, with its billion–plus population and economy that has been growing at nearly 8 percent annually.